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Suppose that the yield on a two-year Treasury security is 5.84% and the yield on a five year Treasury security is 61. Assuming that the

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Suppose that the yield on a two-year Treasury security is 5.84% and the yield on a five year Treasury security is 61. Assuming that the pure expectation theory is correct, what is the market's estimate of the three-year Treasury rate two years from now! The error marpin will allow either arithmetic or geometric averaging on this question Your answer should be between 5.58 and 7.98, with no special characters. You may round to 4 decimal places if you wish but only 2 decimal places are necessary for a correct

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